Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 1 LECTURE 25: MANAGING & ENGAGING PROJECT STAKEHOLDERS (CONCEPTUAL FOUNDATIONS) 1

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 2 Project Stakeholder Engagement

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 3 Project Stakeholder Management Process Framework Understand the Project Context Identification of All Project Stakeholders Stakeholder Analysis & Impact Evaluation Design Management & Engagement Strategy Implement Management & Engagement Strategy The Project Life-Cycle (Initiation to Completion) (PSIS) Project Stakeholder Information System External Factors : Laws, Culture, Politics etc.; Internal Factors : Principles, Policies, Experience, Information, Knowledge Project Complexity, Cost & Time Constraints, Innovation, etc. Process Framework Influencing Factors MONITORING EVALUATION & CONTROL Periodic Revision and Modification When and Where Appropriate Managing and Engaging Project Stakeholders ( The Project Stakeholder Mgmt. & Engt. Process Framework) Proactive Focus Stakeholder Management Maturity Levels (Evolution)

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 4 Goal of Project Stakeholder Engagement Supportive Neutral Adversarial Project Stakeholders Project achieves its goal within time and budget according to its require- ments and the satisfaction of all its key stakeholders. Project Stakeholder Management & Engagement Strategies

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 5 Managing and Engaging Project Stakeholders (Categories of Engagement Strategies) PROJECT CONTEXT Documentation of the project stakeholder community’s interests, concerns, their expected attitude and behaviour towards the project and review of their options based on a rigorous analysis including application of modeling and other (qualitative, quantitative) tools. INFORMATION CONSULTATION INCENTIVES PARTNERSHIP

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 6 Managing and Engaging Project Stakeholders (The Best Approach) NOTE: There is no “one- size-fits-all” approach in stakeholder management/ engagement.

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 7 Managing and Engaging Project Stakeholders (Strategy: Engaging Supportive Stakeholders) Retention Increase the level of supportiveness of the project’s key active stakeholders Retain interest and support of all project stakeholders Use supportive stakeholders to influence adversarial & neutral stakeholders in favour of the project Convert (important) passive supportive stakeholders to actively supportive ones Persuade stakeholders to provide input for the project Lobbying Allying Conversion Persuasion

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 8 Managing and Engaging Project Stakeholders (Strategy: Engaging Neutral Stakeholders) Encourage neutral stakeholders to be- come supportive stakholders Prevent neutral stakeholders from be- coming adversarial stakeholders Prevention Encourage

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 9 Managing and Engaging Project Stakeholders (Strategy: Engaging Adversarial Stakeholders) Influence adversarial stakeholders by seeking alliances with supportive stake- holders Reduce (and when possible eliminate) re- sistance by (actively) adversarial project stakeholders Prevent passive adversarial stakeholders from turning into active ones Reduction Prevention Networking

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 10 Managing and Engaging Project Stakeholders (Strategy: Engaging Adversarial Stakeholders) Prevent adversarial stakeholders from joining forces to oppose the project Convice adversarial stakeholders that they may stand to benefit from the project Offer incentives to adversarial stake- holders to gain support for the project Division Awareness Incentivization

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 11 Managing and Engaging Project Stakeholders (Some Key Limitations) Major Limitations ABSENCE OF COMMITTMENT COST AND TIME HUMAN & TECHNICAL RESOURCES ACCESS TO INFORMATION POLICIES LACK OF CREATIVITY

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 12 Managing and Engaging Project Stakeholders ( Reactive & Preventative Strategy Matrix) Reactive Strategies Low High Preventative Strategies LowHigh This approach may be indicative of either inadequate stakeholder mana- gement/engagement on the project or that the stakeholders identified are easily manageable. For simple projects with a small behaviorally predictable stakeholder community this may be adequate. An effective and efficient approach to managing/engaging the project stakeholders. Project resources (cost, time, effort etc.) are conserved and uncertainty and frustration are avoided. However, a lot of creativity, flexbility, quality information and constant monitoring is required. An ineffective and inefficient approach to managing the project stakeholders. Project resources are spent in correcting issues and prob- lems with stakeholders after they have arisen and which may have been avoidable had some adequate effort been given to anticipating and carefully planning for them. Here the project team spends not only resources to devise a preventa- tive stakeholder engagement approach but also finds iself in the position of having to expend resources on devising strategies for tackling emerging issues and prob- lems with the project stakeholders.

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 13 Information is uni-directional from the project team to the stake- holders. It is a highly customizable and usually quite potent instrument for engaging project stakeholders and is comparatively cost-effective. Information can be provided to stakeholders in various forms (e.g. Newsletters, Leaflets, Brochures, Press Releases, Websites) and by utilizing diverse transmission mediums (e.g. Per- sonal Contact, Print Media, Radio, TV, Internet) Managing and Engaging Project Stakeholders (Strategy: Provision of Information)

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 14 Consultation serves to acquaint the project team and ext. stakeholders with each others standpoint. In development projects, consulta- tion or dialogue workshops invol- ving stakeholders are common and may occur frequently over the course of the project and subse- quent to its completion. Consulta- tion permits collection of impor- tant information from stakeholders and gives them a sense of ‚owner- ship‘ of the project. Managing and Engaging Project Stakeholders (Strategy: Consultation)

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 15 Incentives for making ext. stakehol- ders supportive of a project can take on many forms, for e.g., giving jobs and assurances to prioritize procurement of project inputs from within the stakeholder community. Project teams have developed innovative solutions such as provi- ding stipends, organizing sporting events and galas, offering guided tours of project sites, donating computers to schools, making play- grounds etc. Managing and Engaging Project Stakeholders (Strategy: Provision of Incentives)

Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 16 A powerful tool which the project team has for sending the message to stakeholders that their voice matters on the project is to make them ‚partners‘. Partnership means permitting the stakeholders (within carefully specified limits) to pro- pose alterations to the project scope in order that their concerns can be addressed and they will re- frain from adopting measures which may have a negative cost, schedule or other impact on the project. Managing and Engaging Project Stakeholders (Strategy: Partnership)